Terraform Labs’ court-appointed plan administrator, Todd Snyder, has filed a lawsuit against Jane Street, alleging the trading firm used non-public information to trade around key liquidity moves shortly before TerraUSD’s breakdown in May 2022, according to The Wall Street Journal.
The complaint names Jane Street co-founder Robert Granieri and employees Bryce Pratt and Michael Huang. Snyder alleges Pratt, a former Terraform employee, helped set up private communication channels with Terraform staff that were later used to share internal information with Jane Street.
Allegations Center on Curve Pool Activity
The filing highlights a May 7, 2022, episode involving Curve’s 3pool. Snyder alleges Terraform withdrew 150 million UST from the pool without a public announcement. The lawsuit says a wallet linked to Jane Street withdrew another 85 million UST roughly 10 minutes later, and argues the timing supports claims the firm acted on advance knowledge of Terraform’s liquidity decisions.
The complaint also references Snyder’s earlier lawsuit against Jump Trading, claiming some information that reached Jane Street may have flowed through contacts tied to Jump. Jane Street has denied wrongdoing, arguing Terra’s losses were driven by misconduct at Terraform and saying it will defend against the claims.
Terra’s 2022 Collapse
TerraUSD (UST) lost its dollar peg in May 2022, triggering a rapid collapse in UST and Luna that erased roughly $40 billion in market value and contributed to a wave of bankruptcies across the crypto sector.
Terraform later entered bankruptcy proceedings and reached a multibillion-dollar settlement with U.S. regulators. Founder Do Kwon has faced U.S. criminal charges tied to the collapse, with sentencing reported in late 2025.
